Farmer participation in government commodity programs: A multiyear risk management analysis

Government programs for agricultural commodities affect planting decisions and farm income for many producers. Many proposals to reduce federal expenditures are being considered for reform in the 1995 Farm Bill. In order to determine the effect of these proposals on both farmers and government, the producer's planting and participation behavior must be analyzed. This study determines the value to an individual farmer of participating in government programs in a stochastic, multiyear planning environment. It also determines how producer behavior might change if certain proposals for the 1995 Farm Bill are adopted.